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Treasure Bags are small deep purple bags which randomly drop from enemies when they died.
In regular quests, Treasure Bags contain Collectables which can be turned in for prizes at some specific NPCs.
When a Treasure Bag drops, all members in a group can pick it up. A Treasure Bag disappears in your sight once you pick it up, but group members who didn't pick it up can still see it.
A Treasure Bag vanishes after 10 minutes if you don't pick it up.